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The state government issued a Government Order (GO) on Monday, attaching Rs 793 crore in cash from Margadarsi Chit Fund Company, which is headed by Cherukuri Ramoji Rao.
The Criminal Investigation Department (CID), which is investigating the case, reported to the state government regarding irregularities in the chit activities of Margadarsi.
The CID alleged that the foremen, auditor, managing director, and chairman transferred the chit fund money to the Margadarsi corporate office in Hyderabad and invested it in mutual funds, which goes against the rules.
Furthermore, the CID stated that Margadarsi operates with 37 branches in Andhra Pradesh, and inspections have been conducted at some of these branches over time. Irregularities were noticed at the branches in Labbipet in Vijayawada, Arundelpet in Guntur, Narasaraopet, Ananthapur, Eluru, Rajamahendravaram, and Visakhapatnam.
In the GO, the government stated, "Margadarsi auditor K. Shravan and the foremen of these branches, managing director Cherukuri Sailaja, chairman Ramoji Rao, have conspired and committed the offenses."
According to the CID, Margadarsi has 1989 active chit groups operating in its branches in Andhra Pradesh, with chit values ranging from Rs 50,000 to Rs 1 crore.
The state government has instructed the CID's Additional Director General to take control over the attached movable property of Margadarsi.
Additionally, the government has directed the CID to file an application before the respective court to make the orders absolute.
